Question

which of the following are key characteristics of game theory? correct answer(s) there is always a nash equilibrium. press space to open there is always a dominant strategy. press space to open players do not know what other players will do. press space to open it is usually represented by a payoff matrix.

Answer 1

Game theory involves players making decisions and receiving payoffs based on others' choices. Not all games have a Nash equilibrium or dominant strategy, but players usually do not know what others will do and game theory is usually represented by a payoff matrix.

Let's evaluate each statement:

1. There is always a Nash equilibrium. - False. While Nash equilibrium is a fundamental concept in game theory, not all games have a Nash equilibrium, and some may have multiple Nash equilibria.
2. There is always a dominant strategy. - False. Dominant strategies are strategies that are always the best choice for a player, regardless of the choices made by other players. Not all games have dominant strategies.
3. Players do not know what other players will do. - True. In many game theory models, especially in non-cooperative games, players make decisions without knowing the exact choices or strategies chosen by other players. This concept is known as imperfect information.
4. It is usually represented by a payoff matrix. - True. Game theory often uses payoff matrices to represent the outcomes and payoffs associated with different combinations of strategies chosen by players.

Therefore, the correct statements are:

• Players do not know what other players will do.
• It is usually represented by a payoff matrix.